China Ag ministry: more grain in 2008

China's grain output in 2008 is expected to surpass the 500 billion kilograms
recorded for 2007, the official China Securities Journal reported, citing the
agriculture minister Sun Zhengcai.

Sun said the agricultural products market is currently
in balance due to output growth in recent years and large reserves.

"Farm
produce prices are reasonable and controllable," Sun added. Premier Wen Jiabao
has said that barring natural disasters, China will have a steady supply of
grain. "China's grain output grew four consecutive years to 500 billion
kilograms in 2007, and we are confident the country can maintain a stable supply
this year.

The central government promised to spend 562.5 billion yuan
(€52 billion) this year to support farmers, 130.7 billion yuan (€12 billion)
more than in 2007.